Your Guide for Getting a Nevada Collection Agency License
If launching a debt collection business in Nevada is on your mind, there are a few things to consider before you get started. First and foremost, you have to obtain a Nevada collection agency license, so that you can operate legally in the state.
The Department of Business and Industry regulates the activities of collection agencies. It sets a list of criteria that all applicants have to fulfill, so that they are deemed suitable for the job. As a part of this process, you have to provide a Nevada collection agency bond.
For a detailed list of licensing requirements, as well as the intricacies of the bonding procedure, you can consult the guide below.
The Nevada collection agency license criteria
In order to obtain your license, you have to comply with all requirements defined by the Financial Institutions Division at the Department of Business and Industry. The licensing authority ensures that you meet the rules set in the Nevada Revised Statutes, Chapter 649.
Your first step is to consult the collection agency application package. It contains the application form that you have to fill out, as well as various other documents that you have to complete either with your initial application, or at a later point.
Some of the requirements that you have to meet include:
- Business entity documents
- Personal history and background investigation release forms for owners, partners and managers
- Payment of $375 licensing fee
- Initial surety bond of $35,000
You also have to complete the dedicated application form for all collection agency managers in your business. The licensing fee per person is $190, and you also have to pay $115 for investigation.
In order to keep your agency and individual manager licenses active, you have to renew them annually before June 30. You need to complete the renewal forms and pay the licensing fees until June 1.
In addition, all collection agencies also have to meet the following deadlines throughout the year:
- January 31 – Annual Report
- Second quarter of each year – CPA Assessment
- September 30 – Attorney General Assessment Fee
Together with providing all necessary paperwork, you also have to get a collection agency bond, so that you can start your business in Nevada.
The bonding amounts are the following:
- $35,000 – initial requirement; monthly balance below $100,000
- $40,000 – monthly balance between $100,000 and $150,000
- $50,000 – monthly balance between $150,000 and $200,000
- $60,000 – monthly balance above $200,000
The required bond amount represents the maximum penal sum that harmed parties can demand from you for proven damages you have caused them. This is the mechanism through which the bond protects your customers against potential illegal activities you may commit.
In order to get bonded, you have to pay a premium. It represents a percentage of the bond amount, set on the basis of your personal and business finances. If your credit score and company finances are in good shape, you can expect rates between 0.75% and 5%. Thus, for the initial bond amount of $35,000, you may end up paying between $262 and $1,750.
Would you like to get help for your Nevada collection agency licensing and bonding from our experts? Don’t hesitate to contact us at 877.514.5146.